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Horizon Audio Systems sells and installs car starter systems.
The company’s sales budget for the fourth quarter is provided below:
October November December
Budgeted Sales $90,000 $98,000 $104,000
You can expect the company’s cost of goods sold to be 80% of sales.
The ending inventory balance each month should be 20% of the next month’s cost of goods sold.
Based on this information, how much inventory do you need to purchase for November?
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